Queens Tower sunset panorama

Innovative financial tools can unlock capital for science infrastructure

The Challenge

  • Science infrastructure can drive development and offer a good return on
    investment, but it requires a solid business case for investors to deploy capital.
  • Donors and foreign governments have historically funded science and research in low – and middle-income countries (LMICs). However major international development funders, such as the US, UK and European countries, have cut their foreign aid.
  • Innovative financial mechanisms can unlock capital market investment for
    science infrastructure in LMICs, namely using blended finance, multilateral
    development banks (MDBs), and government guarantees to de-risk investments.
  • The capital market offers more sustainable finance for LMIC science
    infrastructure than donor – or aid-linked funding and allows countries
    to set their development agenda.